‘The Dark Side of Ethical Leadership’: How Machiavellianism and Moral Licensing Encourage Knowledge Hiding?

Abstract

Drawing on moral licensing theory, the study aims to examine how moral licensing influences the relationship between ethical leadership and employees’ knowledge-hiding behaviour in the hotel industry. It further attempts to comprehend the role of Machiavellianism as a moderator for ethical leadership and moral licensing relationships. Data were collected from 278 frontline hotel executives using a three-wave data collection process. A positive association was found between ethical leadership and knowledge hiding. Furthermore, the study unearthed a significant association between ethical leadership and moral licensing. Machiavellianism emerged as a significant moderator of the relationship between ethical leadership and moral licensing. Notably, moral licensing was found to mediate the relationship between ethical leadership and knowledge hiding, shedding new light on this complex interplay. Knowledge sharing and dissemination are essential for maintaining and enhancing a competitive advantage. Hence, leaders should prioritize open communication to identify early signs of conflict, which, if overlooked, can escalate into knowledge-hiding behaviour. Ethical leadership can be particularly effective when managers implement ethical policies and social practices to promote knowledge sharing and boost work commitment in the hospitality industry. This study’s unique contribution to the literature lies in its revelation that Machiavellianism, a dimension of the dark triad traits, moderates the relationship between ethical leadership and moral licensing. Furthermore, the study’s discovery of moral licensing as a mediator for the relationship between ethical leadership and knowledge hiding adds a fresh perspective to the field.